This is to bring to the notice of the public that the Debt Management Office (DMO), on behalf of the Federal Government of Nigeria (FGN), wishes to introduce a retail savings product that will be accessible to all income groups – the FGN Savings Bond.

Kindly note that the FGN Savings Bondfor March 2019 kicked off today.

For a clear understanding of what FBN Bonds is all about, please check here…

ISSUANCE

       MATURITY

2 Year FGN Savings Bond

March 13, 2021: 12.05% per annum

3 Year FGN Savings Bond

March 13, 2022: 13.05% per annum

Opening Date

March 4, 2019

Closing Date

March 8, 2019

Settlement Date

Wednesday, March 13, 2019 (this is the date the bonds will be credited into your CSCS Account domiciled with your broker).

Units of Sale

N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.

Interest Payment

Quarterly (Coupon rate divided by 4) 

Redemption

Bullet payment on the maturity date

Coupon Payment Dates: June 13, September 13, December 13, March 13

 Purpose

To deepen the national savings culture.To provide an opportunity to all citizens irrespective of income level to contribute to National Development.To enable all citizens to participate in and benefit from the favourable returns available in the capital market.To diversify funding sources for the Government. 

 Benefits

Interest income is paid quarterly directly into the bond holder’s account.The Bond is acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.Good for savings towards retirement, marriage, school fees, house projects, etc.Safety: backed by the full faith and credit of the Federal Government of Nigeria.

 Liquidity

The Bond will be listed on the Nigeria Stock Exchange for trading and provides liquidity for investors who want to exit before maturity.


Subscription Mode

Investors are to subscribe through stockbroking firms trading on the floor of The Nigerian Stock Exchange (NSE) and accredited by the DMO to act as Distribution Agents. (Please visit www.dmo.gov.ng for the list of accredited Stockbroking Firms).

SOURCE: https://brandspurng.com/2019/03/04/march-2019-fgn-savings-bond-offer-for-subscription/